Other Resources and Emerging Technologies

Other Resources and Emerging Technologies Performance Metrics

Other resources and emerging technologies such as demand response (“DR”) and energy storage will play integral roles in the grid of the future, while more renewable energy generation is integrated into the grid and the role of fossil fuels is expected to diminish. A balanced portfolio of firm, intermittent, utility scale and distributed generation and storage resources will mitigate system risks related to reliability and resiliency, and provide solutions for customers. The Companies will continue to ensure a high level of system reliability under the new, higher-renewable regime, using as ancillary services1 both generation units and grid service resources, such as energy storage technologies and DR. The following reports the Hawaiian Electric Companies’ DR and energy storage metrics.

1 Ancillary services are those services other than pure energy delivery, which are necessary to maintain reliable operation of the power system. The design and operation of the power system must ensure sufficient resources are available to provide necessary ancillary services for adequate reliability. Historically, generating assets provided ancillary services. Today, new types of resources can also be considered for ancillary services, including DR and storage.

Demand Response

DR refers to actions by customers that change their consumption (demand) of electric power in response to price signals, incentives, or directions from grid operators. As Hawaii continues to increase its reliance on variable renewable energy, it will be harder for the Companies’ System Operators to maintain the stability of the state’s electricity grids. DR programs give grid operators more flexibility when balancing supply and demand. DR may contribute to meeting grid service requirements,2 such as contributing to capacity or ancillary services such as, regulating reserve, contingency reserve, and non-spinning reserve.

In July 2014, in accordance with Hawaii Public Utilities Commission (“PUC”) policy guidelines and directives (Order No. 32054), the Hawaiian Electric Companies submitted an Integrated Demand Response Portfolio Plan (“IDRPP”), proposing to implement a portfolio of DR programs that appeals to a wide variety of residential and commercial customers, reduces energy supply costs, increases the effective use of renewable energy, increases system reliability, and enhances customer choice. The resulting increased operational flexibility will support the integration of additional renewable resources and address a changing profile of energy demand created by the growth in distributed resources. The Companies proposed a company-wide implementation, transitioning from existing programs to a new DR portfolio.

In February 2017, the Companies filed an application with the PUC to seek approval of the underlying proposed tariff structure for the grid services that will serve as the basis for the portfolio of DR programs.

The following DR metrics report the Hawaiian Electric Companies’ total amount of capacity, in mega-watts (“MW”) (customer-level), that has been enrolled in the Companies’ current DR Programs (residential & commercial sectors), and will include other DR programs implemented by the Companies in the future. Additionally, utilization metrics such as the number of events, and event duration are reported in this section.

2 “Grid service requirements” refers collectively to the capacity and ancillary services required for reliable operation of the electricity grid.

Energy Storage

Energy storage uses mechanical, chemical, or thermal processes to store generated energy and to later dispatch electrical energy to support the operation of the grid.

The Hawaiian Electric Companies intend to use energy storage as part of a portfolio of resources and methods to help support grid reliability and safely integrate cost effective renewable energy onto the utility grids. Energy storage has the potential to smooth intermittent generation from renewable energy and improve the reliable operation of the electrical grid by providing ancillary services such as volt-VAR control, frequency regulation, and by providing contingency reserve. In addition, energy storage may contribute to meeting the system’s peak demand.

Energy storage is one potential resource within a diverse resource portfolio. The Hawaiian Electric Companies are evaluating energy storage technologies and applications in parallel with ongoing assessments to increase the operational flexibility of the Companies’ generating units, the development of planning and operational tools, and the development of DR. The deployment plans for energy storage must be developed in concert with other operating practices such as generating unit dispatch, load shed schemes, load management, and customer-focused solutions.

The metrics reported here are for both energy storage systems owned and operated by the electric utility and for those owned and operated by independent power producers (“IPPs”). The amount of power (i.e., capacity) in MW is reported for the Hawaiian Electric Companies, the IPPs and the cumulative total for the both the Companies and IPPs combined.3 The amount of energy stored in megawatt hours (“MWh”) is reported for the Hawaiian Electric Companies, the IPPs and the cumulative total for both the Companies and IPPs combined.4

The following reports the Hawaiian Electric Companies current energy storage metrics.

3 The cumulative power is the sum of the maximum rated output in MW from all energy storage systems.4 The cumulative energy storage capability is the rated energy in MWh stored in all energy systems.

Hawaiian Electric Companies & IPPs (Amount of Power)

Hawaiian Electric Companies & IPPs (Amount of Energy)

Hawaiian Electric Company & IPPs (Amount of Power)

Hawaiian Electric Company & IPPs (Amount of Energy)

Maui Electric Company & IPPs (Amount of Power)

Maui Electric Company & IPPs (Amount of Energy)

Hawaii Electric Light Company & IPPs (Amount of Power)

Hawaii Electric Light Company & IPPs (Amount of Energy)

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